New rule to curb credit for borrowers with outstanding debt

Singapore

MORE help is on the way for borrowers who are in danger of falling deep into unsecured debts. Come Jan 1, the new Credit Limit Management Measure will enable financial institutions (FIs) to cap the additional unsecured credit for borrowers whose outstanding unsecured debts exceed six times their monthly income.

For these borrowers, FIs will not be allowed to grant any increase in credit limit or any new unsecured credit facilities that will cause the individual's total credit limit to exceed 12 times their monthly income.